The first audit from Vulcan for Adhinath took place in Dec 2015 and the 2nd audit happened on February 2016 at its Bhiwandi (Mumbai) warehouse.Sharmila Das | ETRetail | Updated: July 13, 2017, 09:40 IST

New Delhi: Snapdeal owned logistic service company Vulcan Express has debited approx Rs 9 lakh on the basis of a fake audit that Vulcan claimed to have conducted for a Delhi based company Adhinath Enterprise, three people aware of this dealing told this today.

The first audit from Vulcan for Adhinath took place in Dec 2015 and the 2nd audit happened on February 2016 at its Bhiwandi (Mumbai) warehouse.

Following the fake audit, the company was forced to sign a MoU with Vulcan on 31st January 2017 where it was settled to debit Rs. 9,43,081 from the total outstanding of approx Rs 26 lakh. The vendor came to know about the matter later that such audit never happened. When Adhinath requested Vulcan to share audit reports, Vulcan did not accept such proposal, said the person who was involved in the first phase of conducting the audit.

“Audit by E & Y has been forced on us, on the basis of which the amount of Rs. 9,43,081/- has been deducted from our final payments,” said a company official from Adhinath Enterprise who requested anonymity.

When contacted Vulcan Express spokesperson said the matter stands closed.

“Facts from the forensic investigation carried out by one of the big four accounting firms were shared with the vendor referred to in this instance. After satisfying itself with the facts of the matter and after refusing the opportunity for a joint audit, the vendor accepted the due payment and has signed a "No Dues Certificate" in full settlement of the dues. The process of settlement and payment was completed in January-February 2017 and the matter stands closed. Any allusions to the contrary are without any basis,” said a Vulcan Spokesperson.

Earlier this week ET had reported about Vulcan’s acquisition possibilities by logistic company such as Gati, TVS Logistics among other. As per the report, a potential transaction could take place over the next 60 days, with Snapdeal expecting Vulcan Express to fetch Rs 90-120 crore.

Also, in a fresh development PTI reported that Flipkart is going to make a revised buying offer of close USD 1 billion to Snapdeal this week after its first proposal of USD 850 million was rejected by the Snapdeal board.